Refused a loan from my bank

toxtethlad

I applied to have a debt consolidation loan of £10,000 from my bank Alliance-Leicester (Santander) They have written to me stating they can not give me a loan due to information on me held by Equifax, Call Credit and/or Experian. I have checked all of my credit files with these credit reference agencies and there is NO ADVERSE INFORMATION on me or my address. I have three credit cards a car loan and a mortgage ALL OF WHICH ARE UP TO DATE and I have never defaulted on any payments. The loan would have removed all of my credit cards and car loan therefore only having my mortgage and loan. My credit file has been searched only once in the last 7 months (by the bank for the purpose of this loan). Why would they say they have made a decision of no when my credit file is excellent?

USM

I'm assuming you have £10,000 of debts you want to consolidate in which case do you earn enough for this kind of exposure. Minimum salary for consideration here is probably £40,000 a year.

CLAPTON

If you currently have 10k of debts and want to borrow 10k to consolidate, the bank will see your total debt as 20k.
Even though you may intend to consolidate there is no requirement for you to do so.

So they would look for a salary of say 40k to support that level of debt

toxtethlad

my salary is £26,000 and I have explained to the bank that this would be consolidation, I do not owe £10,000 it is near the £8,000 mark and leaving a few quid over for the summer.

USM

Unfortunately that's never going to happen

CLAPTON

toxtethlad wrote: »

my salary is £26,000 and I have explained to the bank that this would be consolidation, I do not owe £10,000 it is near the £8,000 mark and leaving a few quid over for the summer.

If you only have 8k worth of debt now it's absolute financial madness to get a couple of grand extra for summer.
Think pay off the debts and not increase them

[Deleted User]

toxtethlad wrote: »

my salary is £26,000 and I have explained to the bank that this would be consolidation, I do not owe £10,000 it is near the £8,000 mark and leaving a few quid over for the summer.

as above thats why they wont lend you 10k,that would mean 18k of debt on an income of 26k(the max on that income would be around 13k)whilst you may tell them its for consolidation theres nothing to stop you not doing that once you get the loan,or heaven forbid using it to pay off debt then running up the debts again on cc`s etc

t508

I think you need to realise that you may be sliding down the wrong slope with your debts. You are getting overcommited and might not realise. Pay Min payments to your HP and Mortgage then get your cards BT to interest free cards. Concentrate of the highest interest rate after that and clear your debts. If you get a consol loan you will always have the temptation to run your debts back up but will then really start to struggle as your income will not have any leeway. I suggest you try the debt free wanabee section for some advice and inspiration. good luck anyway

opinions4u

They've looked at your range of credit commitments and decided they don't want to take on those debts. They don't have to.

Out of interest, how much were your unsecured debts 3 years ago, 2 years ago, 12 months ago ... ?

toxtethlad

My debts have decreased in the past three years so I dont think im sliding the wrong way im actually doing okay. I owed 16,000 at the begining of 2008, I would have paid more off my debts as i was living at home with my parents but I bought my home in 2009 and had to pay a large deposit of 12,500. I now owe around the 8,000 figure. My concern is not really the debt as it is managable i just wanted one payment each month rather than 4 seperate ones. I dont juggle crdeit cards around or do balance transfers maybe i should look into that? I just thought it odd the bank refusing me a loan when i have such a good history but now i do see why, many thanks

pamelamalcolm

I think they will require a higher salary if you want to ask for a loan in that amount.